Poynt Corp (CVE:PYN) bounced the 10 cents level and possibly caused a short squeeze, which pumped the price up a solid 60%. The company issued news this morning, which should adhere to the preceding rally.Poynt stated to have completed the acquisition of local advertising platform assets from go2 Media, Inc. This will allow the company to publish mobile advertising to third party publishers. By doing so, Poynt has expanded their market reach to include local advertising market niche, which should in turn reflect positively on their revenues.
Furthermore, the company is basically upgrading their core assets by switching from an ad publishing application to a platform with an ability to publish on multiple mobile applications. The purchase will cost them $450 thousand.
Yesterday’s price rally could have been caused by traders who had some leaked information, but it also served very well to attract interest from uninformed traders.
Technically, yesterday’s trading volume appears promising as intraday view shows there was rather significant action towards the end of the day. Such increases in activity usually indicate a possibility of continuation. Combined with the news, it becomes an even greater possibility.
PYN has major resistances set at 20, 25 and roughly 30 cents. 15 and 12.5 cents currently serve as vague support levels. The stock also has a preceding uptrend carrying on since December 2010, thus the idea of further appreciation has a lot of support.
